US Edition‘Keep calm and carry cash’: Banknotes at home are key to preparing for crises like war, study shows
European Central Bank study shows cash demand surged over €140 billion during crises like the pandemic and Ukraine war, prompting authorities to recommend 72-hour cash reserves for emergencies.
- Wednesday, the European Central Bank published research showing consumer demand for banknotes surged during crises and urged households in the euro area to `keep calm and carry cash`.
- The COVID-19 pandemic triggered sustained cash hoarding during uncertainty, while Russia's full-scale invasion of Ukraine caused local surges in cash demand near conflict zones.
- Data show daily net issuance peaked at 80 million and averaged 38 million versus a 28 million counterfactual in countries bordering Ukraine or Russia.
- European authorities now advise households to stockpile food, essentials and cash for at least 72 hours, while Sweden recommends cash for a week and authorities distributed booklets on crisis preparedness.
- From a systems perspective, household cash holdings provide essential redundancy as a `spare tire` for payment rails, while central banks and the private sector must ensure adequate stocks as banknotes represent over 10% of euro area GDP.
33 Articles
33 Articles
TÉMOIGNAGES - The European Central Bank has recommended on Wednesday to keep a few tens of euros in cash in the event of a crisis. Today, only a quarter of French people, according to a recent study by the Bank of France, keep money under their mattresses.
"Keep Calm and Carry Cash": so the characteristics of cash become indispensable "during crises and can be used to prepare for crises"
The European Central Bank recommends that European citizens keep a fairly large amount of cash at home in order to deal with all kinds of crises, a case in point in the Netherlands or Norway.
Despite digital payments, demand for cash is increasing. Why bills become "replacement tires" in times of crisis.
A note published this Wednesday on the website of the European Central Bank explains the interest of always keeping a certain amount of money in cash at home.
In a study, the European Central Bank explains that demand for cash increases in the event of a crisis, despite the increasing digitisation of payments.
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